Buy To Let Mortgages In London
Our London Buy to Let Mortgage Service
Why choose us?
Fair Mortgages can provide you with a first class service if you are looking for buy to let mortgage advice.
Special features of what we offer include:
- Rental income requirements - What lenders now require on rental income - we can help you through the lender criteria maze
- Whole of market broker - We deal with over 60 UK lenders
- Rates - Access to leading buy to let market rates
- Exclusives - Access to exclusive buy to let mortgage deals not available on the high street
- Our buy to let expertise - Expert help whether you are a first time investor or experienced full time landlord
- Credit issues? - We have lenders who will take into account previous defaults and missed payments
- Experienced buy to let investor? - Have a complex buy to let or have a portfolio of 5+ properties? - speak to us
To investigate your buy to let mortgage options call our specialist team on 0117 313 7780 or fill in our call back form.
Although getting house finance anywhere in the United Kingdom is in principle the same, the higher market values associated with buying in the capital means that you may be wondering what buy to let mortgages in London are available.
To find out what buy to let mortgages could be available to you, you may wish to use our buy to let mortgage calculator. You just need to select ‘Buy to Let’ from the drop down menu and enter a few relevant financial details such as how much you would like to borrow and how much you can afford to put down as a deposit; the calculator will then be able to generate a selection of products that fit your specified criteria, one of which might be the best choice for you.
You may also benefit from speaking to an independent mortgage adviser to help find buy to let mortgages in London. An independent, whole of market, mortgage adviser will be able to offer you impartial advice throughout the whole mortgage process .They will be able to use their expert knowledge to search across the whole of the market to find the best buy to let products for your specific circumstances. There are also a selection of smaller lenders not available on the high street, with specialist mortgages, that can only be applied for via an intermediary such as an adviser.
To find out if we can help you, fill in our online contact form, to request a call back from one of our advisers and receive a free initial consultation about your buy to let requirements. Alternatively, get in touch with us directly by calling 0117 313 7780.
Tax changes in 2017
It is important to note that due to the changes to the tax rules governing the buy to let mortgages, landlords can no longer deduct their entire buy to let property costs when calculating their profits. This means that landlords' tax bills will increase significantly in the following tax year.
The new tax relief rules do not apply to limited companies and as such there has been an increase in private landlords looking to set up their own ltd company for their buy to let properties. However, the associated costs should be considered before setting up a limited company.
Getting a buy to let in London
Securing buy to let finance is a little different to getting a first time buyer or mover mortgage, although there are some similarities.
Deposit – While home buyer mortgages can be secured with loan to values of 95%, buy to let lenders tend to require a potential borrower to be able to put down a deposit of at least 25%. It should be noted that there is a selection of products available for lower deposits. As with most forms of loans the larger the deposit you can afford to put down, the more products and lower interest rates there will be available to you.
Affordability – The affordability of these kinds of mortgages is commonly assessed on the rental value of the proposed property, with lenders tending to require the monthly rental yield of a property to be at least 145% of the monthly mortgage payment. Lenders require the rental coverage ratio estimate to be based on a professional valuation; you cannot merely tell your lender how much you would let the property for based on how much your payments would be.
Portfolio Review - From 2017, landlords can no longer spread equity across their property portfolio. Lenders will not provide a buy to let mortgage to landlords with one or more properties that are not profitable. Therefore, lenders will require an in-depth review of a landlord's property portfolio before approving a buy to let mortgage.
Stress Test - Lenders apply an income stress test as a part of the application process. The income stress test is designed to ensure that landlords can afford mortgage payments even in the event that the interest rates increase to 5.5%.
Buy to let mortgages are both available as capital repayment plans as well as interest-only:
Interest only plans – Buy to Let interest only work by your monthly mortgage payment only covering the interest that accumulates on the loan. At the end of the mortgages term you are therefore required to repay the original amount you borrowed in full.
Repayment plans – Are mortgages where your monthly payment also repays a portion of the amount you borrowed so by the end of the term you will have completely repaid the mortgage.
Our Buy to Let Mortgage Broker Service for Properties in London
We can provide you with a first class service if you are looking for buy to let mortgage service.
To investigate your buy to let mortgage options in London call our specialist team on 0117 313 7780 or fill in our call back form.